gerri: i am gerri willis. tonight to of the willis report. election day across the country and one big see me verges. another big part of obamacare not coming together as planned. not the exchanges or the web site but the young people. 5% down payment mortgage making a comeback what does that do for the rest of us? tonight. "the willis report." gerri: our top story tonight

, outrage. voters take to the polls and did the never ending economic recovery the issues dominating the ballot boxes are taxes. we have grover norquist and john lonski, moody's chief economist. i have to think people are fed up, and it -- a greek just look at the inner-city high key marginal tax rates on income, five and a thousand per year at four .4% we see the same thing in colorado and other places. will people put up with this? >> these are blue cities and states. colorado and a new york are voting with the income-tax bracket is possible in colorado that could be defeated although was started off with a lot of support teachers unions because it is $1 billion to

go to them if they get the tax increase through. but over the last two years the states have been cutting income-tax rates north carolina, oklahoma, kansas carolina, oklahoma, kansas, across the country. tonight we will see of colorado wants to become california and if new york wants to become detroit. gerri: looked at colorado with amendment 66 income tax is 4.6 it is. $75,000 of medium income then it is 5.9% above that they try to push that. but it is up to the year because we talk about giving the money to schools and people our reluctant to say about giving money to kids. >> the last time they put a 1% sales tax for the kids it was defeated handily. colorado does have a history

as a western states but the teachers' union the democrats have put a lot of money into advertising. they also try to raise taxes on marijuana from 15 percent up at 25 also on the ballot. gerri: how do people respond with their wallets? we know consumer confidence is already down. >> by increased taxes you will probably spend the last face it. this is the economic recovery that remains the worst, the most feeble upturn since the second world war. the last thing we need right now are higher personal income taxes. gerri: grover, you agree? >> there are other options. you don't have to spend less if you have higher taxes in new york or colorado, you move. there is no national tax increase. gerri: people from new york

city are apoplectic because a year you save $70,000 but that is median income in this town. a lot of people will vote with their feet. >> in hampshire, tennessee, texas, florida, nevada, and no income tax not for millionaires, and nobody. they love to have people who earn money and work hard move to those states. colorado could learn from california that people will leave. >> that is happening right now some of the big banks in new york city are moving operations to jacksonville florida, a salt lake city city, increasing taxes will simply reinforce the trend and the city of new york in the long run will end up with far less tax revenue than what they had expected after implementing the tax hikes. >> new york is a wonderful

city. so is europe. go visit and live there. [laughter] gerri: you make a good point but talk about the middle-class. the people who are under arrest, fewer and fewer people, taxes go up, you were talking about this. >> year to date we find personal income taxes our up by 16-point 5% that is $142 billion. some of that is growth of more than 100 billion was taken away by the government from the private economy and as a result we still have a dismal economic recovery. gerri: and those numbers are negative? >> that is slowing down because at the start of the year they thought it would grow by 2 percent instead that looks like 1.5% this year or no faster than 2.5%

next year. gerri: i have to bring up obamacare. i believe this is another tax on americans my guess day your premiums would every pay do you see this as another tax? >> there are 20 different taxes in obamacare some of which have not hit yet so yes obamacare forces the cost of health care is a tax but also 28 different taxes. gerri: there are others in the actual law for sure. >> obamacare is a net drag on economic activity if you have so many small businesses trying to find ways to hit the or avoid the 50 employee threshold is the

invisible tax costing us jobs. gerri: the blue state's leading will they pay the piper? what will happen tonight? >> watch colorado. it could be close it is interesting to see people who just legalized marijuana want to tax it back into prohibition. we will see the governor of new jersey refused to raise taxes will be reelected. the republican candidate in virginia who follows a republican governor who raised taxes the biggest in history may pay a penalty for his predecessor's. gerri: there is a lot going on in that race. thank you for coming on tonight. we appreciate your time. war to come including a major insurance company for canceling policies for obama

forces to change his message it changes every day a little bit different about keeping your insurance plan. so ally bank has a raise your rate cd thaton'that's correct.rate. cause i'm really nervous about getting trapped. why's that? uh, mark? i have my reasons. look, you don't have to feel trapped with our raise your rate cd. if ourate on this cd goes up, yours can too. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank.

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>> if you like your doctor you can keep your doctor. period. if you like your health care plan you can keep your health care plan. period. gerri: another obamacare promise broken hundreds of thousands of not millions of times over as policyholders debt cancellation notices there rather than owning a to the reality president adds a new caveat neff former policy adviser for the center of medicaid medicare services you were giggling what do you make of it? >> there are people in the white house who clearly knew that we see the documents but policy people probably believed it because they did

not understand the insurance market's. small businesses were able to review the plan as early so there grandfathered next year so they have through december 2014 to come into compliance. october 2014 and small businesses will get notices that they are also dropped right in time for the election and politicians know that which is why the democrats are so worried. gerri: millions are already getting cancellations take a look at the cancellations all across the country but given that those of the real numbers how can you say the insurance companies make the decision not cancellations just routine business? >> some are looking to get out of certain markets but by and large the vast majority are dropped because they are not in compliance

with the new regulation now they are forced to offer plans of the exchange's. these cancellations were anticipated but the administration the devil they would be so happy that they would not notice that got dropped but the plans are not good the prices our high in the benefits are not very good. gerri: you mentioned there moby even more cancellations what is the solution? i hear the republicans beating their breasts but i don't hear anybody say this is how you get fixed. >> the law is flawed in certain individuals will have to look hard if they can get a better deal going outside the exchange but individuals below 250% of the federal poverty level they will get a better deal on the people above those levels will have to look for plants outside the exchange in they will not be as good as what they

have now with the individual market. gerri: people try to make sense of that and you are helping. we talked about the cancellations blue cross blue shield california canceling the cancellations because that acre is bubbling up and they are suing? >> this date government to bobby blue cross blue shield to reinstate the plan so looks like they have to give 90 days' and the states say 180 i the they could have contested this legally so they just reinstated. the administration has been bringing in and executives as well to browbeat them. it will not work. gerri: young folks not signing up what we feared. priority health reporting the average age of people is

51. 50 percent are over the age of 50 we see this play out over andover not what we expected. we cannot pay for this of this is what happens. >> premiums will go of 2015 and then they will drop out of the market sees see that right now teetering in participation i think that will be worse than that of premiums of have to accommodate the older and sicker population. >> they are already higher aid to say it will be worse? >> and the exchanges that is why it will be more competitive to go outside the exchange even though they're not have that benefit they will still get the cheaper deal but at least will be affordable. gerri: doctors got taken for coming on. consumers fighting back against their insurance getting canceled to

residents are suing in them blue cross from misleading them into key and selling from the grandfathered policies we have the attorney representing the plaintiffs in both cases figgie for coming on to be with us. explain what happened in simple terms. >> my to clients were induced to switch from the grandfathered policy to a new policy that is of the blue cross touted would be a better policy and in some cases cheaper. what they did not tell them is by switching there would be canceled that was important because if they knew there would have been canceled they never would have switched in the first place they would have kept the grandfathered policy but

now they'll lose access to their doctors paul simon has a battery of doctors for serious illness and he will now lose access because of the cancellation. gerri: it is a big problem and we have noticed that there was not dead in the "wall street journal" yesterday about a woman with cancer losing access to her doctors and her hospital and a similar situation. what i found interesting is that company kept pounding the people offering new policies to say they were trying to entice them that and the blue cross would have to keep paying? >> it looks like they tried to get people off the grandfathered policies because it costs them more than the newer policies.

said they had enticed them from the grandfathered policies to the others which debut at the time they would be cancelling but did that tell the people that. gerri: here is what a of the blue cross had to say because we have not refused -- review the lawsuit we decline to comment. >> it is too early they have not even been served yet. they were just filed yesterday but we hope to get into negotiations are hope they would allow these people to go back or give them the option because they were happy with their old policies and doctors before they were enticed they feel to seek broad dash dc and civic two different cases one is 59 the other is 32? speethree guess a and the long term customers.

50 years ago for 25 years. gerri: have they ever see in those letters before to say get a new policy before? >> i dunno if they saw letters like that before but they both called up the blue cross representatives of both felt pressured to get new policies and they both felt deceived by the blue cross representative to entice them into these policies they knew would be switched or canceled i mean. gerri: will either of your clients go on to the california exchange if they don't win this lawsuit? >> they are looking at the exchange and unfortunately none of the doctors and hospitals that might call it

goes to is on the exchanges and he is a bad shape. >> my heart goes out to those people. we appreciate your time. nextel will be joined by one small-business owner who was forced to cancel his health plan. and your reaction. customer erin swenson ordered shoes from us online but they didn't fit. customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes back, i'm not happy. use ups. they make returns easy.

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gerri: small-business owners scrambling over the high cost of obamacare they are among the millions of americans receiving cancellation notices of the

male white turnips guess that says this small business plan gets the ax co-founder of slid capital management. tell me about the plea and you have in place currently you will lose. >> it covers everybody the entire single person and it meets our needs very well for the whole staff. gerri: newly have nine employees doing the right thing then one day of a telephone they tell you what? >> there are only two major providers in their area one is completely vacating the industry at the end of the year we get intel the renewal date which is you first saw it have through may to figure out what we will do but i went on to look at the options and there is significantly more expensive. gerri: why do you think this

is connected to obamacare? >> you normally get in annual increase normally 5416% but we offer a full suite of benefits and there is only so much money to go around now we're faced if these increases are 33% or if we cut coverage to pay out of pocket to have a co pay or something like that. , . gerri: what did they tell you about why they did this? did they give you the explanation? >> you meet people that have gotten notices that review in the first quarter but because we deal with a lot of small businesses they said this is coming second and third quarter people don't even know yet so what is going on people don't even realize they will be faced with this short may be

just happen to know. gerri: you are just on the curve so i do you put them into obamacare? >> i don't know to be honest. that is part of the problem. there are some options but they're all for this save money is significantly worse id benefits or significantly more of money to come out of someone's pocket if it comes out of the employee's pocket how can they come to work? the family plan is over $2,000 per month. it is already expensive but at what point is almost not worth going to work? gerri: this is the obamacare cost your company the gold planned 15% increase? >> that is what they have

out of pocket expenses 20% coinsurance with a 50% but the platinum plan the $733 with a 33% it is the closest to what we have now about where does that money come from? it is not in the cheaper or the same that they told us. i expected some increase but not this much and where will it come from? gerri: a tiny the company now has to figure this out. what would you tell washington? >> i would have told them how to roll the ball better or beta test of the things that business would do with some things this major. i would love to compete across state lines i can make my own decisions i just did not get that opportunity

gerri: that is what makes people frustrated it is good for you. take it. >> this is what you will pay. what do you think? who do you blame for the losing your health care plan? i will share the results of the end of tonight's show how the fed's policy of low interest rates could hurt your pocketbook with insurance. more mortgage lenders offering loans well below 20% with a 5% down payment.

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now vis which it up to talk about life insurance years of low interest rates have hit insurance policies universal life insurance in particular now people are forced to make tough decisions to a show of more money to keep the value or reduce the benefit significantly so people have been misled about the policies and what can they do? you hear lots of complaints coming out of the life-insurance industry people that were upset with policies that seems to be pretty dramatic. >> absolutely right to. people by thoss in good faith paid premiums 10 or 15 or 20 years now they're not

worth the death benefit. >> so you buy a benefit thinking you get millions then it is cut later? the company says no no no. how do they get away with that? >> we all know the basics of life insurance you paid a premium if you die if they paid the death benefit but the premium is based on the cost of insurance with the insurance company says instead of just the cost of insurance pay us a little more in added some many be will invest the cash a and use it to buy even more insurance in the profits will benefit but they did not tell you the investment may not make a good profit. >> the return is one long slide the south they say

this is what the market is doing we cannot provide the returns to expected is that fair but as a response? >> note the insuuance industry is the biggest industry on the planet they understand what the investment world is all about the reason they did not disclose this is because you were taking the risk not them if the investors made a big profit they would get a cut if they don't you suffer. they did not disclose this adequately the sales representative certainly did not and they sold these policies in the heyday of the '80s and '90s it did nobody emphasize the risk and now here we are. gerri: people are upset what do you tell people who want to buy this universal

life-insurance policy? >> no. if you buy a life-insurance policy by one that everything is guaranteed the cost, the death benefit in the rate of return inside all lead that has guaranteed features but the track of universal policies is nothing is guaranteed. there might have to reduce the freedom or the death benefit or may not generate a profit so the burden of the risk is on you don't buy that. >> is there anything else i said search for? >> if you already own one of these policies contact your dip independent advisor to see this status does it could blow up meaning it is worth less and all the of money is gone with no death benefit so don't just assume everything is fine because you have not heard from

everybody -- anybody than once you've done that what are the best steps? there are strategies we can recommend to protect as much as possible but you need to take a look at your policy now. gerri: great interview. i am sure people are digging through their papers right now. thank you. buy or lease a car? could change of down payment spark the home buying spree or take us back down that rabil? stay with us. ♪ ♪

gerri: end good news after years of having to put down

20% for a mortgage now some banks have or that to just 5% so joining us now we have the ceo for restore equities. we have a handful of companies here offering these loans with 5% down is this good news for the economy? >> for the short term definitely one of the drivers of jobs is the important feature but important part folks just looked at the stock market that people forget the biggest value is owning their own home with the equity of their own home and for the short term at least it is a good boost with the economy. gerri: 30 year fixed 50 years 3.two.

that is pretty good and pretty attractive and we just heard the adjustable mortgages are resetting people are getting lower rates which is a benefit but long-term 5% down payment the p.m. and a on dash the bmi i did not realize the government says you have to pay that forever and ever? >> effectively you could pay it off it isn't worth it. of the scarier part is right now everything is good quantitative easing the pedal is of the metal at the fed but it is scary if you think of what we might be building up to with repercussions. gerri: what happens to homeowners? will they be screwed all over? >> housing or spending my

feet when they pull back eventually there is only so long they could print money to sell it to yourself there'll be a huge sucking sound and then they will get these crazy cheap loans with the individual buyers. >> so it is time to buy now? >> sadly, the answer is yes but if they keep running this for too long it could get scary right now we feel that they have bounced back but mostly the new york city like san francisco not overheat yet but the rest of the country there is still a lot of opportunity to pick up the dream home at a drastic discount. gerri: at the end of the day there will be a gigantic

sucking sound what they have the inflation higher ian and the reason to think you want to operate conservatively rather than by? >> yes and no if you lock today you get the value in sealock get the loan i recommend hold out as long as you can. have the interest-rate locked in interest rates go up and then it is everybody else's problem. gerri: just keep your eye on the prices for the housing not to pay too much for the asset at the end of the day if the rates go through the roof and that false. >> that is what happened last time that cause the pop in the marketplace by right now it is still early innings with individual single-family homes so right

now you still pay a little more than you did two years ago but you still get good value with today's interest-rate but scary is you takes advantage of the extra liquidity into years. gerri: thank you for coming on the show. it is time to look as stores were you're looking at. with next to record levels with the federal reserve keeping the stimulus in place with the twitter ipo view are expressing concern of relax profits. twitter lost $5 billion in the recent poll shows nearly half believe twitter is not a good investment. more people are listening to pandora combating competition for my tunes. they listed 1.5 billion

hours up 80% from one year ago. i add trading in commodities futures could be capped the cftc proposal restricts trading volume of futures contracts for 28 commodities a similar role was struck down last year by a federal court. those are some of the off hot stories right now on fox business.com. important new information into use as a question should you buy or should you these? we will be right back. ♪ we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age.

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in the market for a new car , more more drivers are asking themselves not only what kind car they should get, but whether to buy or lease. here's how you can decide. lauren, it's always great to have you. >> thank you. >> it seems more people are leasing these days. if the popular thing. is the momentum thing. >> that's a good question and this our record car sales going on right now and part of it is people obviously limited expenses and budget is tight. what they're doing is making the payments a little bit more palatable by saying, 39 month leases, 40 some month leases. that's not necessarily a benefit.

seventy-two months is a long time to make payments on a car. way too long in my book. >> i agree. what he went that debt over your head? typically, this is what happens. people trade up. they get a luxury car and leasing it allows them to afford it and the guys at the car dealerships will tell you , it's a great deal. this is what you want to do. but, how do you figure out if it is the right thing for you? >> first, you start with that basic math. by not linked of the warranty. if you are looking at ikea or a hunt day and it has a 1 million warranty maybe a longer lease will work for you. if you are looking at something like a ford or a gm or chrysler and even a lot of german brands you will see three years, 36000 miles so that means if you're outside that warranty someone will pay when a car needs works. so it is it mean lex simple math.

you don't rent more than 36 months. you go 10-15000 miles. if you drive less than 10000 miles, forget the lease. it will be good for you. you should buy it. because you won't little enough miles on it. forget the lease. on the car. just maintain a. it's always smart to do that. in that window, that 10-15000 range that's my tell people look at the vehicles that are there. there are some great deals, but don't be tricked into buying that 39 month lease because there three months, if there's a promise on you. >> that's definitely right. let's talk about electric cars for a second. give important advice for people who might want to lease where these vehicles. it's a good idea, why? >> this is something you want to lease for sure. if you're going to consider an electric vehicle or a hybrid i'll we still people remember only 20% of the united states is eligible for all those discounts. you might be making too much

money. make sure to check with an account or financial person. i know you would know how to figure that out in seconds, but what you would do is then take that information and find out what other municipalities are. maybe you work for a large company that offers a discount. check all of that and then make your decision. the key with leasing these cars is at the end of the three years the technology is constantly evolving and there is great technology and you will see longer distances, new cooler items, all this great technology you want and in three years walk away. >> it's not just the green car, it's every car. all the technology is changing so much. at the tell you, i'm going to have to have like a five-hour instruction session just to understand how to turn on the car. talked a little bit about at the end of the day much

wiggle room do these dealers have? do they really negotiate with you or is the deal, the deal the deal? >> i thank you and i need to go car shopping together because i'm actually helping my mother a lot right now. if you are leasing there is absolutely movement in those deals. do not let anyone take our lease prices 329 a month. there is movement. be careful have a move that. you can adjust the length of the loan, maybe you need more money down, always read the small print. with the big prick gives you, the small print takes away. you need to sit down and read that and take your time. i don't care if the finance and insurance guys same really have so time. you have much time as you need to read those details even if you take a copy home with you because they can make these numbers adjust anyway they want with the bank. if you have great credit rating, believe me they will work with you. if you are back to that same brand there are discounts and movement. if you stay within brands

there is at least $2000 maximum available in adjustments in price. if you are leaving one high-end brand to another there is the same amount available. >> love it. great job as always. thank you for helping us out. we will be right back with our 2 cents question of the day. so i can reach ally bank 24/7, but there are no branches? 24/7. i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink ter. it's a long story.

well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. but it doesn't usually work that way with health care. with unitedhealthcare, i get information on quality rated doctors, treatment options and cost estimates, so we can ke better health decisions. that's health in numbers. unitedhealthcare. it's not for colds, it's not for pain, it's just for sleep. because sleep is a beautiful thing™. zzzquil. the non-habit forming sleep-aid from the makers of nyquil®. at od, whatever business you're in, that's the business we're in with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes to make your business our business.

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gerri: president obama adding an aden umto his old campaign line, you remember it, keep your insurance plan as long as it complies with my new law. who do you blame? obamacare or the insurance companies. here is what some of you are posting on my facebook page.

obama, my cancellation notice states my policy has been canceled due to not meeting the new law requirement. so annoying. wow. so we ask the question on gerriwillis.com, 95% said obamacare, 5% insurance companies, log on to gerriwillis.com, you or fire, hire are some of your e-mails, patrick from washington, it goes without saying that law needs to go. they should have tested the web site before going live with it, if they had been thinking. this is a sign they were not. >> mike from north carolina agrees, it does not matter when the web site is fixed, obamacare will never work. wanda, i can't help but think that mess was planned to come up with reason to go to a single

payer system, i don't just anybody in this administration. >> you are on fire. we love hearing from you, send me an e-mail. >> and you know we need answers on obamacare. the republicans on one hand are revels in the missteps on the web site. while the democrats try to rewrite the president's speeches to omitt that pledge you can keep your insurance plan, nobody is making sense, nobody is solving our problems, what happens to millions of people? will they be able to sign up for coverage. could we please be allowed to shop before we buy, and see all of the prices. we need to see all of the prices. i'm sorry we're not taking the president's word for it that obamacare is better than our current care. if the government cannot manage a web site, how can they manage your health care? that is my 2-cents more, thank

you for joining us, dvr the show if you can't catch us live, have a great night. we'll see you right back here tomorrow. lou: the polls have just closed in virginia, to hear some political pundits and savants hold for it, you might think that president obama was on the ballot, he is not, a contest between tea party republican ken cuccinelli, and establishment clinton democrat terry mcauliffe, we'll bring you the votes as they are counted and released. i'm lou dobbs. good evening, the votes are being tallied in virginia, all across the state, the pricincts are reporting as well,